Deutsche Bank and Invesco PowerShares Capital Management announced the launch of eight exchange-traded notes (ETNs) linked to the performance of industrial metals and crude oil.
The four metal focused ETNs are linked to the Deutsche Bank Liquid Commodity Index – Optimum Yield Industrial Metals. The industrial-metals index is intended to reflect the price changes in a basket of aluminum, copper and zinc futures.
The ETNs are traded on the NYSE Arca under the following symbols: o PowerShares DB Base Metals Double Short ETN (BOM) o PowerShares DB Base Metals Double Long ETN (BDD) o PowerShares DB Base Metals Short ETN (BOS) o PowerShares DB Base Metals Long ETN (BDG)
The leveraged short-performing note will offer two times the monthly inverse performance of their benchmark, plus a monthly T-Bill index return. The leveraged long-performing note will offer two times the monthly performance of their benchmark, plus a monthly T-Bill index return.
The unleveraged notes will offer exposure to their benchmark, plus a monthly T-Bill index return.
The crude oil focused notes are the following: o PowerShares DB Crude Oil Double Short ETN (DTO) o PowerShares DB Crude Oil Short ETN (SZO) o PowerShares DB Crude Oil Double Long ETN (DXO) o PowerShares DB Crude Oil Long ETN (OLO)
“We are very pleased with the success of our ETN platform, and today we continue our commitment to delivering cost-effective and convenient short and leveraged commodity exposure to investors by issuing the crude oil and base metals ETNs,” says Kevin Rich, Managing Director in Deutsche Bank’s Global Markets Investment Products group.
All of the notes will charge annual fees of 0.75 percent. Each of the eight ETNs is senior unsecured obligations of Deutsche Bank.
Ron DeLegge is the San Diego-based editor of www.etfguide.com.